- Created by: molliegeorgiou
- Created on: 03-04-15 10:47
Heath's economy 1970-74
- Initial aim: 'free market' policies with cuts in public spending.
- Anthony Barber initial policies: tax cuts and credit and hire purchase restrictions to control money supply.
- Inconsistent - complemented by rates and fuel rebates for poor families.
- 1973-1975: recession - instability in Middle East.
- October 1973 Yom Kippur War: oil supply was reduced.
- Cost of fuel rocketed (up to 400% at its peak).
- National incomes policy - 2% fall in Britain's national output and increased inflation.
- U-Turns: nationalisation of Rolls Royce (1971) and financial aid to Upper Clyde Shipbuilders.
- 1973 - balance of payments deficit over £900 million.
- Unemployment rose to 1 million.
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Industrial Relations under Heath.
- Initial aim: to bring trade unions to heel with his own initiatives as part of a 'free market'.
- Excessive pay demands.
- Rising inflation.
- Industrial Relations Act (1971) - ignored by employers and TU's.
- 1971: more days lost through strikes in any year since General Strike of 1926.
- Unemployment up to 1 million.
- Winter of 1973-74: NUM organised overtime ban and further strikes in protest at Heath's attempts to curb wage demands.
- Jan-March 1974: 'Three Day Week'.
- 'Who Governs Britain?' - Feb 1974 election.
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Heath: the EEC
- New Year's Day 1973: Heath formally signed Britain's entry.
- Membership had been rejected twice before by French President De Gaulle.
- Heath believed membership would tackle 'stop-go' economics of recent years under both major parties.
- 1974: Enoch Powell (Conservative dissident) - urged people to vote Labour due to their opposition to EEC membership.
- Impacts: no real change in economy & Britain had to contribute more as a powerful country and so got little out.
- 'Most significant achievement'.
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- 'Selsdon Man'
- New type of Conservative - appealed to lower middle-classes.
- Majority of 30.
- First democratically selected leader.
- BUT U-Turns made him appear the same as previous leaders.
- Hobbies included yachting and listening to classical music.
- Attended Oxford - still perceived as upper class/aloof?
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